New York (HedgeCo.Net) Earlier this month it was reported that hedge fund inflows in 2014 were the highest they had been since 2007. Last week, the SS&C GlobeOp Forward Redemption indicator showed that withdrawal requests dropped to 2.49% in January. That is down from 2.67% last January and down from 5.87% in December. It is also the lowest monthly redemption percentage since January 2013.
The SS&C GlobeOp Forward Redemption indicator is compiled by SS&C Technologies Holdings. The information is gathered from the company’s fund clients and that group manages approximately 10% of the total assets invested in hedge funds.
With inflows hitting a seven-year high and redemptions hitting a two-year low, hedge fund managers have to be pleased with the asset growth.
It is a little surprising to see inflows increasing and redemptions slowing considering that the industry as a whole underperformed the market last year. Perhaps investors are realizing the benefit of professional investment management and are concerned about the bull market potentially coming to an end.